Prabhudas Lilladher's research report on Aurobindo Pharma
Aurobindo Pharma’s (ARBP) operating performance continued to remain weak in Q1FY23, given cost headwinds. We believe cost pressures to remain in near term and margin trajectory should improve from H2FY23. However, pick up in US sales hinge on timely niche approvals along with stabilization of pricing pressure in base business. ARBP has multiple growth drivers in place with investments in vaccines, injectables, biosimilars and PLI, which are expected to be reflected from FY24. At CMP, stock is trading at 11.4x FY24E P/E. We broadly maintained our estimates.
Outlook
We recommend ‘Accumulate’ with TP of Rs635 .
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